Financial services companies busted for spam marketing

Several financial services companies have been busted for illegally offering their products via spam calls, texts and emails.

Three financial services companies have been busted for offering their products via spam calls, texts and emails, in breach of telemarketing laws.

The Australian Communications and Media Authority (ACMA) has taken action against Phoenix Securities, My Alfred, and Pineapple Funding.

ACMA chair Nerida O’Loughlin said the practice was widespread - and that financial services companies were among the worst offenders.

“Australians can experience significant economic harm when financial services companies break the rules,” Ms O’Loughlin said.

“Those in vulnerable circumstances are particularly at risk when out of the blue they’re offered what sounds like easy money or fast loans. Stopping this kind of unlawful marketing is a priority for us.”

One company sent 175 texts offering pre-approvals and interest-free periods for business loans, ACMA said.

The financial services sector is one of the most complained about areas for telemarketing, according to Ms O’Loughlin.

Court-enforceable action taken by ACMA requires the companies to undertake an independent review of their systems and compliance with anti-spam laws.

In addition, Phoenix Securities paid a $26,640 fine after it was found the company illegally sent over 3000 emails offering business loans without consent.

Software development company, My Alfred made 14 calls offering its automated trading system to numbers listed on the Do Not Call Register.

Loan broker, Pineapple Funding sent 175 texts offering pre-approvals and interest-free periods for business loans without the consent of the recipient.

All three companies will also be required to train staff about their compliance obligations and prove they are taking action on recommendations from the review process.

ACMA launched a crackdown on spam marketing by the financial services industry following an influx of complaints.

In the 2020-21 financial year, ACMA received 3,381 complaints about telemarketing from financial service companies.

A subsequent crackdown has helped reduce unlawful practices by one-third in the first half of 2021-22.

Over the past 18 months businesses have paid nearly $900,000 in ACMA-issued infringement notices for breaking spam and telemarketing laws, many of which were financial services companies.

Businesses are not allowed to make calls to numbers on the Do Not Call Register or send email and SMS marketing without consent.

Financial services giant Chase Edwards was among five companies issued with a formal warning in July of last year for breaking the rules.

The company called two numbers on the Do Not Call Register offering free financial assessments.

Lastminuteloan.com.au also received a warning for sending unsolicited text messages, notifying recipients that they had received approval for a loan of $200.